Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018: $ Davis (422,000) 211,000 66,000 $ $ Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and S Gibson $ (821,000) 382,000 262,000 (24,000) $ (201,000) $ (774,000) (201,000) 50,000 $ (925,000) 258,650 540,000 595,350 547,000 444,000 $ 2,305,000 $ (830,000) (630,000) (925,000) $12,385,000) (145,000) (485,000) (145,000) 40,000 (590,000) 171,000 235,000 661,000 432,000 1,499,000 (569,000) (340,000) (590,000) $ (1,499.000) Prey 1 of 3 Next > Check my work View previous atten UVVVU (925,000) JUUUU (590,000) 5L Retained earnings, 12/31/18 Total liabilities and stockholders' equity $(2,385,000) $ (1,499,000) Gibson acquired 60 percent of Davis on April 1, 2018, for $595,350. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $39,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $396,90 Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018. a. Prepare a consolidated income statement for the year ending December 31, 2018. b. Determine the consolidated balance for each of the following accounts as of December 31, 2018: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering vour answers in the tabs below. Prey 1 of 3 Next >